Washington Supreme Court hears argument in Gary Yetter case over deduction of attorney fees from state offsets

The Washington State Supreme Court heard oral argument Thursday in Gary Yetter v. Department of Labor and Industries over whether attorney fees and litigation costs must be deducted when the state calculates offsets against workers' compensation benefits.

"I'm Brian Wright, and I represent Gary Eder. I'm asking this court to overturn Rainier v. Department of Labor and Industries," said Brian Wright, the attorney for the appellant, who argued the court's prior decision misread how federal law is incorporated into Washington statute.

Kelly Paradis, deputy solicitor general for the Department of Labor and Industries, urged the court to adhere to Regnier, arguing stare decisis and the statutory text counsel against reversal. "This court should adhere to its prior decision in Regnier for 3 reasons," Paradis said, warning that overruling would create disparate treatment among workers.

Justices pressed both sides on statutory language and the role of federal regulation 20 CFR 404.408 and 42 U.S.C. 1424a. The arguments focused on whether Washington's incorporation of the federal statute requires the state to apply the federal implementing regulation's treatment of attorney fees, or whether state law stands apart. The case was submitted after argument and no decision was announced.